Domestic Fuel

Labcon North America, a company that specializes in manufacturing earth friendly laboratory products, announced today the completion of a $3.3 million, 800 kilowatt (kW) rooftop solar panel system. Over 2,500 solar panels were installed on the company’s 125,000 square foot building, taking up nearly half the roof. Now complete, the solar energy generated should provide nearly 30 percent of Lebcon’s energy needs. The project took 7 months to complete, and in addition to the solar panel installation, included improvements to power routing systems.

“At Labcon we place a high value on being a responsible manufacturer and considerate member of our community,” said Jim Happ, President of Labcon North America. “By installing one of the largest solar projects in Sonoma County [California], we are helping the environment while reducing our energy costs and helping reduce the carbon footprint of our products.”

Based in Petaluma, California since 2003 (Petaluma is most famous for the movie American Grafitti), the company received its project funding from U.S. Bancorp Equipment Finance, and partnered with SunPower for the installation. This project was just one the company has undertaken to become more environmentally sustainable.

“We chose SunPower as our panel supplier, because we wanted to work with a company based in the United States,” added Happ. “SunPower has been an excellent partner, helping us meet our sustainability goals.”

Last week leaders from rural communities met with President Obama along with Agriculture Secretary Tom Vilsack, as well as the president’s Domestic Policy Adviser Melody Barnes as part of the White House Rural Champions of Change roundtable. One of the attendees was Eric Rund a farmer from Pesotum, Illinois. He is also the CEO of Green Flame Energy. He was one of 18 people from 16 different states who were invited to share their ideas on how the country can improve the quality of life in rural communities and promote economic growth.

“I was honored to be selected for the Council and have the opportunity to share with national policy makers what biomass production can do for farmers, rural communities, job creation and energy independence,” said Rund. “I invited the President to visit my farm to see first-hand what we’re doing to create change.”

Rund has been an early adopter when it comes to biomass research. He is actively developing biomass markets and has been working with local home owners, community school districts and businesses to educate them on how they can utilize biomass energy produced by local farmers.

The meeting Rund attended was just one in a series of meetings being held in DC this summer as part of the White House Rural Council and the White House Business Council to improve economic conditions and create jobs in rural communities. Champions of Change recognizes Americans who are accomplishing great achievements in their communities to out-innovate, out-educate and out-build the rest of the world.

According to a new report released today in the European Biomass Review, and conducted by RISI, lignocellulosic biomass demand will reach 44% between 2010 and 2020. This increase in biomass need will be spurred by renewable energy policy. The majority of the biomass will be used in the energy sector, but will also be used in industrial and residential sectors.

The report highlights the potential of biomass production and aims to identify where the biomass may come from including forest and agricultural residues and energy crops. However, despite availability, one key to success, says the report, is the ability to mobilize, or harvest, transport and store the biomass. The report lays out three scenarios for mobilization of new biomass sources by 2020, based on various regions. In addition, a cost-curve analysis for each region and each scenario illustrates the implications for biomass pricing and imports.

According to RISI, lignocellulosic biomass is currently the largest renewable energy source (RES) although wind, solar and geothermal are rapidly developing. Therefore, the study also analyzes the economics of biomass versus other RES’s using macro demand drivers and the National Renewable Energy Action Plans (NREAPs) to forecast biomass demand by sector through 2020.

“The NREAPs offer insights into how governments plan to meet the renewable energy targets by 2020,” said Glen O’Kelly, author of the study. “But forecast biomass demand is based on announced investments, carbon costs and the relative economics of biomass, as well as an analysis of macro drivers: forecast GDP, population, household energy use, forest industry production – all considered in this study.”

The European Biomass Review covers EU27 countries as well as Norway and Switzerland with six regional designations including North, West, East & South Europe, UK, and Ireland.

A new report from Informa Economics released today concludes that ethanol production is not causing a “strict food-versus-fuel tradeoff” that automatically drives consumer food prices higher.

The report, which was prepared for the Renewable Fuels Foundation, is an historical analysis of corn, commodity and consumer prices from 1985-2010. One of the key findings of the study was that no single factor has been responsible for higher consumer food prices over time, “but rather, there is a complex and interrelated set of factors that contribute to food prices.”

The report also found that other supply and demand factor besides ethanol, such as increased exports, have also contributed to the rise in the commodity price for corn. “Furthermore, corn prices have a relatively weak correlation with food prices, as the farm share is a relatively small portion of the overall retail food dollar and for many products corn is only a portion of the farm value,” said report author Bruce Scherr, CEO and Chairman of Informa Economics.

“Yet again, sound analysis has demonstrated that the farcical food-versus-fuel debate is just that – a joke,” said Renewable Fuels Association President and CEO Bob Dinneen. “Unfortunately, the effort to scapegoat ethanol in order to continue our addiction to imported oil is not funny. The fact remains that no statistical evidence exists demonstrating a significant link between ethanol, corn prices, and rising food costs.”

Europe’s $13 billion biodiesel industry could be in jeopardy according to an article published by Reuters that claims that the European Union (EU) plans to tackle unwanted side effects of biofuel production. The turn-about in support of biodiesel has been in part spurred by fear over climate change and several recent papers leaked from the European Commission that purport that biodiesel’s indirect impacts cancel out the majority of its benefits.

As the EU looks to increase current biodiesel use from 3 percent to 10 percent by 2020, they are also concerned that such a move would increase environmental damage rather than reduce environmental concerns. Their own analysis concludes that a 10 percent biodiesel mandate could lead to “an indirect one-off release of around 1,000 megatonnes of carbon dioxide — more than twice the annual emissions of Germany.” In addition, one report concludes that more use of biofuels could “squeeze food supplies and increase global hunger.”

The studies to which Reuters is referring have not been released by the European Commission and the authors surmise it is because it would “have significant implications for the existing EU biodiesel industry.”

These negative impacts could include a reduction of investments in plants and infrastructure. It could also cause a reduction of biodiesel use, rather than what the country has been aiming for since 2003, an increase in biodiesel use.
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Earlier this week, the Senate compromised on some ethanol legislation that would eliminate the ethanol blenders tax credit (VEETC) at the end of this month. The agreement also eliminates the ethanol tariff on July 31, 2011, five months ahead of the original expiration date of December 31, 2011. The bipartisan Ethanol Reform and Deficit Reduction Act was submitted by U.S. Senators John Thune (R-SD) and Amy Kobuchar (D-MN) and sought to transition to a more sustainable model of renewable fuel incentives.

The Brazilian Sugarcane Industry Association (UNICA) was pleased with the news and has been lobbying for several years to eliminate the ethanol tariff. Brazil eliminated its ethanol tariff early last year. Leticia Phillips, UNICA’s representative in North America said, “As the world’s top producers of ethanol, the U.S. and Brazil should lead by example in creating a free market for clean, renewable energy.”

Phillips noted that last month, the U.S. Senate voted to end ethanol subsidies and UNICA looks forward to continue to work with Congressional leaders to accomplish that goal.

“We thank Senator Feinstein for her leadership on this important issue and urge Congress to pass it as soon as possible,” continued Phillips. “Ending the 30-year-old tariff on imported ethanol will help lower fuel prices and provide Americans with greater access to clean and affordable renewable fuels like sugarcane ethanol.”

She concluded, “Consumers win when businesses have to compete in an open market, because competition produces higher quality products at lower costs. The same principle holds true for renewable fuels. Allowing other alternative fuels like sugarcane ethanol to compete fairly in the U.S. will save Americans money, cut dependence on Middle East oil and improve the environment.”

Ironically, earlier this week Bloomberg reported that the Brazilian government is considering lowering the country’s ethanol requirement from 25 percent to 18 percent due to several back-to-back reduced sugarcane harvests.

Mitsubishi Electric & Electronics USA along with Mitsubishi Motors of North America (MMNA) has debuted an electric vehicle (EV) solar-powered charging station at its MMNA headquarters in Cypress, California. This is the city’s first of its kind EV charging station and the debut signals the company’s commitment to developing and launching its first plug-in electric vehicle, the Mitsubishi i in all 50 states. The EV will be available this November. The charging station is powered by 96, 175W photovoltaic modules produced by Mitsubishi Electric. The solar panels are made with 100 percent lead-free solder, and according to the company, have one of the higher sunlight-to-energy conversion ratios in the industry.

The EV charger is able to charge up to four PHEV’s simultaneously and features three types of chargers with different voltages: standard level 1 (110v) will fully charge an EV in 22 hours; level 2 (220v) that can fully charge an PHEV in six hours; and level 3 CHAdeMO Quick Charger that can charge the battery up to 80 percent in 25 minutes.

“This project will build awareness of solar power’s versatility and efficiency,” said Katsuya Takamiya, president and chief executive officer, Mitsubishi Electric & Electronics USA. “As electric vehicles’ popularity grows, we expect to see more charging stations at large employers, automobile dealerships, shopping centers and schools, where cars can charge while people work, shop or study.”

The DC Quick Charger used for the Cypress charging station is manufactured by Eaton Corporation, and is the first-of-its-kind CHAdeMO Quick Charger certified for U.S. sale and public utility. Mitsubishi hopes that consumers who purchase the Mitsubishi i will use the charging station as gateway charging pad when commuting between Los Angeles and Orange Counties.

Mitsubishi Motors North America President Yoichi Yokozawa added, “We hope that our dealers, learning institutions, and municipalities will look to this technology with a keen eye towards the future, and bear in mind that the gradual acceptance of the pure-EV transportation will be aided by increasing the number of facilities like this one.”

Spain’s first wave power plant has gone into production in the Basque seaport of Mutriku, located between Bilbao and San Sebastian. The Mutriku wave power plant, consisting of 16 units, will generate an estimated 300 kilowatts in power, enough electricity to supply 250 homes. Utility Ente Vasco de la Energia (EVE) inaugurated the wave power plant today in a special event.

“The rising global demand for green energy proves to be a strong catalyst for the implementations of innovative forms of renewable energy,” said Dr. Roland Muench, Chief Executive Officer of Voith Hydro Holding who provided the equipment for the wave power plant. “The Mutriku project shows: Our wave power technology is commercially viable and ready for wide deployment on the global markets. To further this development, adequate feed-in-tariffs for wave power, as they already exist for a number of renewables, can now set the right legal framework.”

According to Voith Hydro, its wave power technology can be deployed in both new and existing breakwater as well as in purpose-built structures. The company says its oscillating water column (OWC) technology is the only one that has been successfully proven with regard to commercial utilization. The company has been operating the Limpet wave power plant on the Scottish island of Islay for more than a decade and the plant has been running for more than 65,000 grid-connected hours.

It is estimated that worldwide potential of ocean energies is 1.8 terawatts and today still remains largely untapped.

Researchers from the U.S. Department of Energy (DOE) Joint Genome Institute (JGI) and the Joint BioEnergy Institute (JBEI) at DOE’s Lawrence Berkeley National Laboratory are trying to discover salt-loving organisms that may be more efficient in treating biomass and improve sugar yield for biofuel production. The class of solvents known as ionic liquids, are liquid forms of salt that will inactivate enzymes by interfering with the folding of polypeptides—the building-blocks of proteins. These solvents are useful for breaking down biomass; however, they can also hinder the ability of cellulases used to produce sugars after pretreatment.

To break this code, the researchers are turning to those found in the complete genome sequences of halophilic (salt-tolerant) organisms. As a test of this bioenergy-related application of DNA sequencing and enzyme discovery, researchers led by the Director of the DOE JGI, Eddy Rubin, and the Vice-President of the JBEI Deconstruction Division, Blake Simmons, employed a cellulose-degrading enzyme from a salt-tolerant microbe that was isolated from the Great Salt Lake.

The microbe in question, Halorhabdus utahensis, is from the branch of the tree of life known as Archaea. It was isolated from the natural environment at the Great Salt Lake and sequenced as part of the Genomic Encyclopedia of Bacteria and Archaea (GEBA) project. The researchers believe that salt -tolerant enzymes may offer significant advantages over conventional enzymes. They can tolerate high temperatures and are resistant to ionic liquids.

“This is one of the only reports of salt-tolerant cellulases, and the only one that represents a true ‘genome-to-function’ relevant to ionic liquids from a halophilic environment,” said Simmons. “This strategy enhances the possibility of identifying true obligatory halophilic enzymes. This project has established a very important link between genomic science and the realization of enzymes that can handle very demanding chemical environments, such as those present in a biorefinery,” said Simmons.

Results of the study were published June 30, 2011 in Green Chemistry. The next step is for the research team to expand this research to develop a full complement of enzymes that are tailored for the ionic liquid process technology. Their ultimate goal is to demonstrate a complete biomass-to-sugar process, one they hope can enable the commercial viability of advanced biofuels.

Researchers at Aberystwyth University are looking at seaweed, more specifically kelp (Laminaria digitata), as a potential feedstock for biofuels. Lead Researcher, Dr. Jessica Adams, says that seaweed may be a viable feedstock, especially if harvested in the summer as suitability of its chemical composition varies by season. The research found that July is the best time to harvest kelp as its carbohydrate levels are at their highest ensuring optimal sugar release for biofuel production. Metal content is also at its lowest.

“The storage carbohydrate and soluble sugars get converted into ethanol in the fermentation process, so we need as much as possible,” said Adams. “Metals can inhibit the yeast too so we also want these to be as low as possible.”

Welsh coast researchers collected monthly samples of kelp and then used chemical analysis to assess the seasonal variability. The results of the study were presented during the Experimental Biology Annual Conference in Glasgow on July 4th.

The research team noted that kelp can be converted to biofuel in various ways including fermentation or anaerobic digestion that produces ethanol or through methane or pyrolysis that produces bio-oil. The chemical composition of the seaweed is important in both of these processes. Researchers believe that marine ecosystems are an untapped resource and are capable of producing more biomass per square metre than fast growing terrestrial plants such as sugarcane.

“Seaweed biofuel could be very important in future energy production,” said Adams. “What biofuels provide that other renewables such as wind power cannot is a storable energy source that we can use when the wind drops.”

The next focus of the research will be to work to improve the viability of the process by identifying and extracting high value substances, such as pigments and phenols, before the rest of the seaweed is used to produce biofuel.

An agreement was announced Thursday by U.S. Senators John Thune (R-S.D.) and Amy Klobuchar (D-Minn.) and Dianne Feinstein (D-CA) that would end the existing 45 cent per gallon Volumetric Ethanol Excise Tax Credit and associated import tariff at the end of this month, reducing the nation’s deficit by $1.3 billion while still providing $668 million for renewable fuel incentives such as blender pumps.

In this “Ethanol Report” interview, Matt Hartwig with the Renewable Fuels Association (RFA) explains what the compromise includes, why the industry supports it, concerns the industry has, and how and when it might become law.

Listen to or download the Ethanol Report here: Ethanol Report on Senate Compromise

Today consumers who support electric vehicles (EV) are pushing for plug-in electric vehicles (PHEVs). But in the not too distant future, EV owners will be able to charge their cars wirelessly. Utah State University Research Foundation’s Energy Dynamics Laboratory, located in North Logan, Utah, has successfully operated the first high-power, high-efficiency wireless power transfer system. This system is able to transfer enough energy to rapidly charge an EV, demonstrating 90 percent electrical transfer technology of five kilowatts over an air gap of 10 inches.

“This demonstration is an extraordinary and historic step in providing technologies to electric vehicle owners who will be able to pull their cars into garages at home and charge without having to plug in with cords,” said Jeff Muhs, director of the Energy Dynamics Laboratory. “Our scientists and engineers have proven that enough power can be transferred over large distances to safely and efficiently charge electric car batteries from a pad under the ground to a receiver attached to the undercarriage of a vehicle – and this is just the beginning.”

As a base, EDL expanded on the theory that enables consumers to wirelessly charge toothbrushes and cell phones. According to the company, their wireless power transfer system is tolerant within six inches in any direction if the user accidentally misaligns the car with the receiver. They also say the power level and efficiency specifications are firsts in the U.S. for a system of this kind and that there is no other similar system in the world.

Muhs added, “In the not-so-distant future, we will see vehicles go from being charged by plugging into the electric grid, to wirelessly charging in garages, shopping centers and dedicated refueling stations, to mass transit vehicles that are charged as they are in motion and eventually wireless electric roadways where cars will travel at 75 miles per hour while being charged.”

“Future versions of the system architecture developed at EDL have the unique potential to be embedded under pavement and transfer power wirelessly to vehicles at speeds of 75 mph or more and provide enough power to completely eliminate the range anxiety of electric vehicles. Wireless power transfer represents the disruptive technology that will eventually enable the safe and efficient electrification of highways, end our dependence on foreign oil, and enable a new era of enhanced mobility,” Muhs concluded.

Two hundred miles west of Wichita will be the home of the newest wind farm in Kansas. Duke Energy Renewables has announced they have purchased the 131-megawatt Cimarron II Windpower Project in Gray County. Construction will begin this fall and the project is expected to be generating wind power by June of 2012. The wind farm will be cited on 16,000 acres of leased farmland and Duke estimates that the wind farm will generate enough energy to power 40,000 homes each year.

Duke purchased the project from CPV Renewable Energy who will maintain ownership of the first phase – Cimarron I. Kansas City Power & Light will purchase all generated power as well as the associated renewable energy credits for 28 years.

“Duke Energy Renewables is pleased to acquire this high-quality wind power project from CPV Renewable Energy and looks forward to helping Kansas City Power & Light deliver zero-emission electricity to its customers,” said Duke Energy Renewables Senior Vice President Tony Dorazio.

In the past month, Duke Energy has announced plans to add three wind farms to its portfolio. Once the projects are complete, the company’s wind-generated capacity will be nearly 1,300 megawatts or enough to power approximately 400,000 homes.

Sean Finnerty, senior vice president with CPV Renewable Energy Company added, “CPV Renewable Energy Company has teamed up with Duke Energy Renewables to ensure Cimarron II meets the needs of Kansas City Power & Light’s customers. The project will bring significant benefits locally and to the citizens of Kansas.”

A deal has been reached in the Senate that would eliminate the ethanol blenders tax credit but still provide incentives for infrastructure development.

U.S. Senators John Thune (R-S.D.) and Amy Klobuchar (D-Minn.) announced the agreement “that allows for a transition to a more sustainable model of incentives for domestic renewable fuel production while reducing the nation’s deficit by $1.3 billion.” The agreement, based on Thune and Klobuchar’s bipartisan Ethanol Reform and Deficit Reduction Act, would end the existing 45 cent per gallon Volumetric Ethanol Excise Tax Credit at the end of this month, five months earlier than its current expiration date of December 31, 2011. According to the announcement from Sen. Thune’s office, “The bipartisan agreement would dedicate two-thirds of the savings from existing money—$1.3 billion—to debt reduction and the remaining $668 million in savings to renewable fuel incentives, helping provide consumers with lower gas prices.”

Renewable Fuels Association (RFA) Chairman Chuck Woodside, CEO of farmer-owned KAAPA Ethanol in Nebraska says the compromise is not perfect, but the industry is willing to do its part to help the budget deficit. “While it is clear this agreement does not encompass everything proposed by Senators Klobuchar and Thune in their bill (the Ethanol Tax Reform and Deficit Reduction Act), their tireless effort to find a path forward is a testament to their commitment to American ethanol production and is greatly appreciated by advocates of renewable fuels,” Woodside said in a statement from RFA.

Something the ethanol industry would like to still see addressed is limitations placed on the cellulosic biofuel incentives, which American Coalition for Ethanol Executive Vice President Brian Jennings says needs “to be fixed in order to meaningfully help spur the commercialization of these promising fuels.” The agreement includes a modification and extension of the existing $1.01 per gallon tax credit for cellulosic biofuels through 2015 that would otherwise expire on December 31, 2012. It would be changed from a yearly credit to a gallon-based, capped credit, according to Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC), something that “adds artificial and unnecessary layers of uncertainty and risk for the financing community.”

National Corn Growers Association President Bart Schott says the “compromise reflects both the importance of the ethanol industry to achieve energy independence and the need for fiscal responsibility” but they would still like to see a more level playing field for energy policy. “Unlike the oil and gas industries, ethanol has been proactively working to reform tax policy affecting the industry and secure a safety net while reducing the overall cost to the federal government,” said Schott.

Sens. Thune and Klobuchar say that the agreement is consistent with recent votes in the Senate that have sought to end the current Volumetric Ethanol Excise Tax Credit while still continuing to fund blender pumps. The compromise can now be considered by the full Senate.

The House Committee on Science, Space and Technology’s Subcommittee on Energy and Environment is holding a hearing today on “examining the science” of 15% ethanol in fuel, but the corn ethanol industry is questioning the list of witnesses, which appears to be somewhat lopsided.

“The Environmental Protection Agency has been thorough in its work on the E15 waiver request and several outside researchers have been evaluating and analyzing E15 and other blends for a number of years,” said National Corn Growers Association (NCGA) President Bart Schott. “While EPA will have someone there to testify, the remainder of those on the list of witnesses testifying have a long-standing history of being critical of corn-based ethanol at any level. This is an extremely unbalanced panel and it is easy to see why some consider this hearing to be a sham.”

Those set to testify at the hearing this afternoon include representatives from the American Petroleum Institute, Environmental Working Group, Evinrude Outboard Motors, National Chicken Council, and the Outdoor Power Equipment Institute. Only one witness, Steven Burke with the Biofuels Center of North Carolina, will be representing the ethanol industry.

“This hearing pretends to look at the science behind E15,” Schott said. “We have a hard time understanding what makes the National Chicken Council or the Environmental Working Group scientific experts on the safety and efficiency of automotive fuels in modern internal combustion engines.”

The Renewable Fuels Association (RFA) is also questioning the witness list for today’s hearing. “This is little more than a congressionally-sanctioned witch hunt for those with an axe to grind against farmers and ethanol producers,” said RFA President and CEO Bob Dinneen. The RFA sent a letter to committee leadership to provide the ethanol industry’s point of view as it is not represented on the panel.

The hearing will be held at 2 pm Eastern time.